Dubai’s real estate market has completed AED 260 billion worth of sales transactions in the first half of 2025, marking a 35 per cent increase compared to the same period in 2024, a new report finds.
The secondary market has emerged as the standout performer, significantly outpacing the off-plan segment across key indicators.
Secondary market dominates Dubai real estate
Sales transaction value in the secondary market surged by 46 per cent year-on-year, whilst the off-plan segment recorded a 25 per cent increase.
Average sales prices in the secondary market rose by 15 per cent, compared to just 5 per cent for off-plan properties.
This trend reflects a shift in buyer demand towards ready, quality stock, driven primarily by the ongoing shortage of available villas and townhouses across Dubai.
The Dubai Land Department (DLD) reported a 55 per cent increase in total villa and townhouse sales transaction value during the first six months of 2025, compared to a 22 per cent increase for apartments.
“We have seen a remarkable shift in buyer focus towards the secondary market. With fewer new villas and townhouses entering the market, many buyers are now willing to pay a premium for high-quality, renovated properties in prime communities. In the five to ten million dirham price bracket, we’ve seen a 50 per cent increase in sales volume in the first half of the year. Even more impressively, the ultra-luxury segment, above ten million dirhams, has recorded a 113 per cent increase in sales volume,” Lewis Allsopp, Chairman of Allsopp & Allsopp said.
“This level of activity is a clear sign of growing investor confidence and high-net-worth individuals choosing Dubai not just for lifestyle, but for long-term capital growth and return on investment. The secondary market is proving its strength, especially in the villa and townhouse space, where demand continues to outstrip supply,” he added.
Allsopp & Allsopp data corroborated this trend, recording a 79 per cent rise in total transaction value for villas and townhouses, and a 30 per cent increase for apartments.
Apartments accounted for 78 per cent of secondary market transactions by volume, with villas and townhouses making up 22 per cent.
However, villas and townhouses significantly outperformed in terms of price growth and value contribution, reflecting strong buyer appetite for family homes and the limited supply available in the market.
The demand has directly driven price increases, with Allsopp & Allsopp reporting a 49 per cent rise in the average sales price for villas and townhouses compared to H1 2024.
Communities such as Jumeirah Golf Estates, Arabian Ranches, and Tilal Al Ghaf have led transaction activity, highlighting the enduring appeal of well-established neighbourhoods that offer privacy, space and lifestyle-led amenities.
The shortage of newly built villas and townhouses has encouraged both investors and homeowners to renovate existing properties.
These upgraded homes are achieving premium resale values, with turnkey, move-in ready properties becoming increasingly popular among both end users and investors seeking strong return on investment.
